unveil it and michelle obama is going to hand them out everybody. >> greg: i think she lying. that is it for the five. see you tomorrow. special report is up next. >> bret: president obama and his team under fire from a scorned press corps about a trio of growing scandals. this is special report. >> bret: good evening, i'm bret baier. an escalating series of potential scandals has the white house in damage control mode. administration officials are in the crosshairs of a angry mainstream media awakened by questionable explanations and statements. a trifecta of scandals. deaths in libya.

political prosecution from the irs and spying on the press by the department of justice. as an often sympathetic press corps in a lather not seen since george bush sat in the white house. wendall goler begins our coverage. >> pressed over missteps by the justice department and irs and lingering questions over the benghazi tragedy, spokesman jay carney denied the white house was under siege? >> absolutely not. we are focused the things that we can do to help the middle-class. the things we can do to help the economy forward. >> reporter: there were questions in which he largely declined to answer questions about the justice department collecting the phone records of a.p. reporters? >> in this situation where the department appears to be conducting a criminal investigation, it would be wholly inappropriate for me to have answers to the questions. >> reporter: they were trying to

find out who leaked information about a failed al-qaeda plot. the president just found out about it last week. >> what about calling up eric holder and what happened? >> a great deal prevents the president from doing that. imagine the story on fox if that were to happen. >> reporter: carney says president believes a balance unfettered access and protecting security. but the six leaked prosecutions is twice as many as all previous presidents combined. meanwhile, even though the irs has admitted to tax exempt groups under more scrutiny. >> we don't have access to it. when we do, we will be able to assess it more specifically than we can now. >> reporter: white house seems to talk more about the benghazi consulate attack accusing republicans of politicizing it. >> reporter: we have one issue as we are learning more a political side show, a to

politicize a tragedy. >> reporter: but republicans accuse the administration of criticizing the talking points about benghazi because of an election that was two months away. >> the president won the electing. he was able to get benghazi behind him in terms of electoral politics, but it won't go away. mr. president, it's not going to go away. >> reporter: one goal of the white house to handle the complaints about the irs and justice department story don't hang around like benghazi. second term presidents become lame ducks soon enough as it is. >> terry: let's break down each scandal and contention. >> bret: that putting conservative groups under the tax microscope had nothing to do with politics. >> a senate review of conservative groups reveal that washington managers were involved as early as 2010.

irs officials asked conservative organizations about their donors lois lerner apologized. they blasted the irs it was bigger than that. >> at no point in time did anyone at the irs to set the record state. there is no single agency that the power that the irs has. they can destroy power. >> as for the irs, acting director said it was lack of sensitivity. mistakes were made but not due to political or partisan motivation. mitch mcconnell isn't buying it and insisted on full transparency and cooperation. >> i am calling on the president to make available completely and without restriction everyone, everyone to be answer the questions as to what has been

going on at the irs, who knew about it and how high it went. >> reporter: in september 2010, senate finance chairman sent this letter to then irs chairman requesting an investigation into the use of tax exempt groups for political advocacy. in march 2012, democratic senators wrote to them for investigation of the groups to determine if they were improperly using tax exempt status. harry reid didn't make excuses for the irs? >> there is a shadowy political groups masquerading organizations in order to police is it anonymous donations from we don't know who. >> reporter: less than two weeks president obama told graduates they shouldn't listen to those warning of abuse have power? >> tyranny is lurking around the

corner. >> reporter: they do investigative journalism revealed monday the same irs office that deliberately targeted organizations before the 2012 election release nine pending confidential applications of the groups. applications that haven't been approved are not supposed to be made public. >> inspector general report just out this evening blames the irs for ineffective management for allowing inappropriate criteria to be developed and same place for more than 18 months the inspector general makes nine specific recommendations and irs says they will accept seven of them. >> bret: a little more than 24 hours in the government's seizure a.p.'s phone records. it did little to dampen the outrage. here is katherine heritage. >> the attorney general says the extraordinary seizure of associated press phone records is justified?

>> this is among if not the most serious, it's the top two or three most serious leaks that i've ever seen. >> reporter: at the justice department and white house aggressive questioning is met with the same response. >> the president feels strongly that we need the press to be able unat the time terrified in the pursuit of investigative journalism. >> they complained of the justice department lack of transparency. >> they haven't told us what they are looking for nor th have they explained why we didn't have any prior notice which our lawyers say is not only can you say mary but required. >> in this letter the deputy attorney general says the subpoenas are narrowly drawn and there is no provider notification requirement if an investigation may be jeopardized. they want to identify the source of a may 2012 a.p. report on a c.i.a. operation to that th wart an al-qaeda plot. five reporters were involved.

which is why the seizure of so many phone records is deeply concerning. >> the government has every right to investigate, however they have to do it with a narrow focus. this starts to look like it was lot broader than that. >> reporter: republicans and democrats are uncomfortable? >> i don't know who did or why it was done but there is no way to justify this. >> they charge the obama white house leaked classified information on the osama bin laden raid, a cyber attack in the iranian program to help his credentials. a senior white house official was able to expand on it without consequences. >> can you tell me that they have inside control or inside information on the a.p. bomb plot in may of last year. >> i had had a teleconference with previous administrations who were going to be out on talk shows on a night that ide was

intercepted. i wanted to make sure they understood the nature of the threat and what it was and what it wasn't. >> reporter: tomorrow the attorney general who is already scheduled to testify in capitol hill before the scandal broke is expected to face another round of sharp questioning this time on the house judiciary committee. >> bret: so the question is double standard? >> to expand on this information in his closed-door meeting with media commentators, but the a.p the is a subject of a criminal prosecution and john brennan was interviewed and there was no consequence. >> bret: more on benghazi in a minute. chuck hagel says most of the pentagon civilian work force will be forced to take 11 unpaid days off. that a reduction from 14 and original prediction of 22. the furloughs will occur between july 8th and september 30th. another day of record highs on wall street. dow gained 124 today. s&p 500 was up 17.

nasdaq finished ahead 24. up next, pinocchios for president obama a bulwark of the establishment passes judgment on the benghazi spin. plus, russia says it catches a c.i.a. spy red-handed. 4 cell phones 7 socks and 6 weeks of sleep but one thing you don't want to lose is any more teeth. if you wear a partial, you are almost twice as likely to lose your supporting teeth. new poligrip and polident for partials 'seal and protect' helps minimize stress, which may damage supporting teeth, by stabilizing your partial. and 'clean and protect' kills odor-causing bacteria. care for your partial. help protect your natural teeth.

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say a word when republicans held up for months and months security funding for our embassy. >> reporter: in fact officials said last october funding levels had nothing to do with the killing. >> i would like to ask miss lamb you made this decision personally. was there any budget consideration or lack of budget that led you not to increase the number of people in the security force there? >> no, sir. >> reporter: white house faced fresh questions about the infamous talking points before being used by ambassador susan rice later shown to be false. >> much as reported many iterations or discussions to be included. >> reporter: and "washington post" fact fact checker, glen kessler award president obama four pinocchios. >> the day after it happened this was an act of terrorism.

>> reporter: but actually wrote kessler, he spoke in vague terms. he did not state that he died because of an act of terror. when given opportunities to declare it as terrorism. he ducked the question. congressional republicans vowed to continue to investigate benghazi. >> it's not going to go away. this is not a fox news story. this is a story of four brave americans that were killed by radical islamists. both carney and they but rejected the charge and boss simply wants to get to the truth. >> bret: thank you. so do you think the president has lost the mainstream media for good? let me know on twitter. >> nato says three u.s. military personnel were killed in a roadside bombing in southern

afghanistan. it happened today in kandahar province the heartland of the insurgent taliban. a convoy struck an improvised explosive device. >> a major incident between old cold war foes. russia says it has caught an american diplomat to become an american agent for the c.i.a. amy kellogg has the sordid details. >> russian intelligence services said this man served secretary at u.n. secretary in moscow was actually a c.i.a. operative and they caught him trying to recruit someone. they released photos of the arrest and he had large sums of cash, technical equipment and instructions for recruit immaterial on him. as well as she is going rigs that he was wearing as disguise. they declared them ordered out of country immediately calling his actions provocative.

in the spirited of the cold war. the u.s. state department would not even say the man was vogel. >> could you confirm that an officer was briefly detained? recent years have seen some lows in bilateral relation but john kerry visited recently russia. state department committed to it today. >> the russians gave out so much information on this arrest not to embarrass washington as much to distracted their own citizens. >> any time they arrest an spy, especially an american spy, this goes down with the average russians and timing couldn't have been better. russian economy is sputtering and president putin are slowly be surely losing popular support. this will go down very well domestically. >> brett, this whole story strikes some observers as a bit

odd. we'll have to wait to see what the u.s. government has to say further on this. in the meantime, russia's foreign ministry has summoned the u.s. ambassador to moscow to answer questions and that is expected to happen tomorrow. >> bret: amy, thank you. >> british prime minister david cameron visited a memorial to the boston marathon bombing victims this morning. cameron, toured the area with massachusetts governor. the war memorial includes t-shirts, letters and running shoes and other items. prime minister is in boston to offer condolences and discussion lessons that can be learned from the bombings. >> three astronauts are back on the ground tonight after five months in space. soyuz space capsule touched down early tuesday morning. an american and canadian

commander and russian cosmonaut are reported to be fine. >> still ahead, is the obama administration breaking the law to promote its healthcare agenda? up next, breaking news on what is next for the abortion doctor convicted of murder. [ female announcer ] at jcpenney, we never stop being amazed by you. so we brought back what you loved. added new surprises. and now, you've come back to us. we're speechless. except for two little words. ♪ over any other carrier? many choose us because we have the largest 4glte network.

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>>. >> bret: we have breaking news out of philadelphia tonight. it concerns the punishment for the philadelphia abortion doctor convicted of murdering three babies still alive. shannon bream with a warning that her report contains disturbing language. >> ee they found him guilty of murdering three babies, kermit gosnell has elected to take a deal that will take the death

penalty off the table. he will be sentenced to life without parole for two of the first-degree murder convictions and he will be sentenced tomorrow on the first-degree murder counted along with scores of felony and misdemeanor counts. he is giving up his right to any appeal. >> he won't have the death penalty, that is a good thing. so when you don't go to that stage, that is a good thing. the appellate process is not a very realistic possibility. >> reporter: a group of prominent african-american leaders denounced gosnell and said it's time to speak out about the impact abortion has on their communities. recent data shows that african-american women have abortions at a rated nearly four times that of their white counterparts. >> gosnell ran his bloody clinic where he made mail milt yons of dollars killing black children. he got away with it simply because he could.

after all, no one really cares about poor, black babies, do they? he knew he could kill black children and no one would blink an eye. reality check criticized the leader saying we know the answer to the black abortion rate is more access to quality care. we know that banning abortion will drive abortion under ground and into back alleys where clings like that will pop up. something that was echoed by harry reid which he pushed back what he called restrictive laws on abortion clinics. >> to keep portions on these clinics back and situations where they wind up like this is wrong. >> reporter: gosnell case has had a big impact on pennsylvania. following the release of the grand jury's report, lawmakers beefed up state laws including things like minors have to get

parental consent and clinics have to be inspected at least once a year. in addition random inspections on nights and weekends. >> bret: shannon, thank you. breaking news from minnesota tonight. the state's democratic governor mark dayton has just signed a bill legalizing gay marriage. minnesota is the 12th state to do so. o.j. simpson is back in court this week. she asking for a new trial. simpson was convicted of armed robbery and kidnapping in a dispute over sports memorabilia. he contends that his lawyers botched his defense. he was a acquitted of murdering his wife in 1995. he was later found liable in a civil trial. >> the nation's four biggest cellphone companies are launching a campaign to discourage texting while driving. verizon, sprint and t-mobile will run ads and even use a

blimp. they found that texas texting while driving can increase 23 times they will be involved in a crash. >> a stunning example how transparent the obama white house is and how to blame the benghazi terror attack on republicans. the grapevine is next. we had never used a contractor before

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>>. >> bret: fresh picking from the political grapevine.

president obama pledged his administration would be the most transparent ever. so here is a little test. american civil liberties union wanted to know more about warrantless spying on citizens' text messages. they put a freedom of information request. here is what the aclu got back. this document which is almost completely redacted. it's basically 15 pages of black saying merely quote, guidance for the minimumization of text messages over dual function cellular telephones. >> other media organizations are starting to examine the obama's culpability in the killing of four americans in benghazi, libya last september. msnbc laid the blame for the dead on republicans, quote, i believe that is what the g.o.p. is most terrified in having to

talk about because they know they screwed up. their us a territory measures may have endangered ambassador chris stevens' life and they don't want to talk about that. actually it was the obama administration that reduced the security to the consul at and james rosen supported that charlene lamb testified on capitol hill that funding levels had nothing to do with her security decisions in benghazi. finally, there have been many claims from the left about the benefits of obamacare but here is a new one. california congresswoman says the president's healthcare law will overall quality of major. it an interesting angle for people that only have jobs for health insurance as one angle to that. i had a friend married to the wrong person just so is she'll have health insurance. away have a lot of less bad marriages as a result of this.

>> as president obama doesn't have enough to worry about, his greatest push for health care reform law. jim angle fills us in. >> health and human services secretary kathleen sebelius is so desperat for money that she is soliciting money from private companies to help pay for the effort. >> there is no doubt there is a shortfall in terms of enforcing and actually making this system go into place. but the question here, whether or not a cabinet level secretary should be in the business of soliciting money. >> reporter: some republican lawmakers question whether soliciting private funds to implement losing is even legal? >> secretary's fund-raising and coordinating with private entities helping to implement the new healthcare law may be illegal. she cease immediately and fully

investigated by congress. >> reporter: despite some accounts, officials say she is not seeking no monies by her department and acting under a 1976 law. democrats appropriated one billion dollars for implementation but the congressional budget office thinks it will cost five to ten times as much. leaving kathleen sebelius having to beg important money to help educate the public with some democrats expressing doubts. >> i just tell you, i just see a huge train wreck coming down. >> reporter: so the administration has not made clear the rules, internet insurance brokers say they could make it buy insurance easier and cheaper. >> we save taxpayer money. >> many will have navigate teors explain the policy choices to people which some will pay $50. some hundred web based entities that sell insurance can explain

the policies signing up people for free saving the government millions. >> its legs expensive because there is no enrollment fee. we bear all those costs. >> they get commissions from insurance companies but the cost of the premium stays the same. while the government scrambles for funds, at least one solution that would save substantial money is waiting for administration rules on how they can help. >> bret: jim, thank you. >> they've has launched an unmanned aircraft the size of a fighter jet from an aircraft carrier. its first. the x-47-b can fly at high speeds at an at attitude of more than 40,000 feet. it's the evolution of the drone program. a carrier based drone would be particularly valuable since it would not have to be based in a foreign country. >> a trinity of scandals, administration is under fire if not under siege the irs and a.p. phone records.

we'll discuss it with the fox all-stars when we return. all business purchases. so you can capture your receipts, and manage them online with jot, the latest app from ink. so you can spend less time doing paperwork. and more time doing paperwork. ink from chase. so you can.

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lurking around the corner. you should reject these voices. because what they suggest is that our brave and creative and unique experiment in self rule is somehow just a sham with which we can't be trusted. >> bret: that was the president at ohio state. it's hard to believe that was a week ago as he was talking at ohio state. this was the white house briefing room today. >> the white house right now has issues, benghazi talking points, irs and political groups, phone records and every instance, either the president or you have placed the burden of responsibility someplace else. >> can you have scrutiny since 2011 which means, also during

the election and it was withheld until after the election? should the white house have been informed earlier? >> the irs on friday gave one version of the story that changed several times. can you just state plainly does the president believe they are truthful? >> is there a siege mentality in the west wing right now? >> bret: it went on like that for an hour. jason riley, charles lamb and syndicated columnist charles krauthammer? >> look. it's clear that it's turned. i'm not sure how permanent it will be but this is surely different than the last four years being cheerleaders. the reason i think "a" is the accumulate laying of scandals all at once and remarkable coincidence that the president was speaking early on about conspiracies -- don't worry about government. tyranny and irs scandal which is

second most powerful agency in government as an agent suppression of political speech is almost a definition of tyranny. that is number one. the second is this: they really feel they were swindled by the president and by jay carney on the talking points. whether it's the most material thing in the world is not relevant, but they were told again by carney. he repeated it. there was no editing from the white house and state department. he only could do that by redefining the word ed it. these are jourjists that edit or strike that, and you strike it, carney was saying there was no editing because you had it in the final edition. everybody understands that is absurd, ridiculous, patronizing and insulting. they were on the receiving end of that. that will cause a big change in how you look at the white house

and how you hear every word that the president or door any says. >> bret: let's break this down. first to the irs which seem to be getting lots of attention on both sides of the aisle. the i.g. report, we obtained it late in the afternoon. may 2010, the determination begin developing a spreadsheet that would be known as be on the lookout listing, bolo listing that was key tea party applications. it begin training specialists on issues to be aware of including tea party cases. by july 2010, determination management stated it had requested that specialists to be on lookout for tea party applications and in august 2010 the determinations unit distributed the first bolo listing. it goes to expand that listing to other specific titles and groups. now, it is coming back to

washington and the irs and here in washington. >> i want to say. this is the one where i think there is a cross agreement this. the president has said it's outrageous. you have democrats on the hill it's outrageous, needless to say republicans and tea party says it's outrageous. it's clear that the president did not know anything about this and had nothing to do what was going on inside the irs on the information we have now. the hope that i have because there is such unanimity and agreement there will get a correction in the tax exempt organization apparatus at the irs which clearly was malfunctioning. so far, there is no indication so far that the president ordered, condoned or knew or any advance of this stuff. >> bret: we know whether it went beyond the irs, we don't know.

>> a lot of it happened in the reelection campaign. and more than the tea party. they said that jewish groups have also been targeted. what this fundamentally about, obama administration was using levers of government, de-fund political adversaries. americans expect apolitical tax l tax enforcement. high senior officials at irs were involved and knew about it earlier than they led on. >> bret: this investigation into a.p. and the leak. listen to this. >> this is not a very narrow cast inquiry. it seems to be very broad and we don't really know what it is about. they haven't told us. >> the deputy attorney general

who would ultimately authorize the subpoena that went to the a.p.. >> this was very serious leak. i've been a prosecutor since 1976. i have to say this is among, if not the most serious, it's in the top two or three, most serious leaks i have ever seen. to put the american people at risk. >> bret: attorney general recused himself. that is why the deputy was in charge of the investigation. charles? >> however serious the leak and it was a serious leak, it doesn't explain why it was so widely, why the net was so wide. two months of getting information on the phone, events that were happening at the a.p. which i'm told that this is unprecedented and unacceptable. if harry reid calls it

unacceptable. it really is. the other thing that katherine heritage said, that the president's own terrorism advisor was on the phone the same niet to people that would be on television. he gets a pass on this. a.p. gets an inquisition, that is very odd. >> bret: to that point about classified information. david said in his book, he quotes defense secretary robert gates and says this. by wednesday of that week, gates went to see donalin, offering a barred assessment of how the white house had handled the raid. i have a new approach to recommend. this is about osama bin laden raid. gates said in can. later provided by his colleagues that was that. shut the blank up, the defense secretary said. concerned about classified finfo.

is there a double standard here when it comes to this administration going after these classified leaks? >> you have to buy david sanger's book is to find out what the word. is i don't know i do think it's odd we're condemning the obama administration for being overly aggressive when all the people on the hill, we sats around this table did he crying the leak and talking how important it was to get to the bottom of it. i think criminalizing leak investigations 6 proved to be a bad counterproductive. we had with v plain plain and joe wilson and all the rest. doctor valerie plame. >> now you have more. >>. >> i'm not sure it rises to the level of benghazi and the irs. i agree. if you are leaking classified information in a way that is going to compromise counter

terrorism activities, i'm an american before i'm a journalist. i hope we get the persons particularly if it's going to affect countered terrorism activities. so did the administration behave within the parameters of the law and to charles' point whether it's casting too wide a net. >> bret: the scandal is what is next when we come back. [ male announcer ] hunt...farm...or trail... polaris has what you want. legendary atvs.. led by the powerful sportsman 850 ho. value-minded side-by-sides... featuring the new ranger 800 midsize. and full-size workhorses including the all-new, class-leading, 60-horsepower, ranger xp 900. polaris. hardest working, smoothest riding. huge rebates d low financing are available right now during the polaris xp sales event. i did? when visa signature asked everybody

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>>. earlier this year they didn't say a word. >> when republicans held up for months and months security funding for our embassies. they are still doing it. >> it takes funding to protect an outpost. yes, it takes funding.

who cut the funds. republicans in the house, that is who. >> bret: that was a scene from democrats about benghazi. you see two senators talking about it. they weren't alone. let's take you back to testimony in october. >> it's been suggested that budget cuts were responsible for a lack of security in benghazi. i'd like to ask ms. lamb you made the decision personally, was there any budget consideration and lack of budget which led you not to increase the number of people in the security force there? >> no, sir. >> that is all i need. thank you very much. it wasn't the lack of money as we've heard by some people trying to suggest that. >> sir, this was an unprecedented attack in size and ferocity.

>> bret: benghazi, down the road here, what where is it going? >> let's hope it's going to a select committee that would have subpoena powers and force people to answer questions. the president's behavior is outrageous. four dead americans including the u.s. ambassador and anyone asking too many questions is politicizing the issue in order to raise money. outrageous. >> i thought that was good try by the democrats to turn into a question of government spending. i don't think it worked. i think it's don't think it's going to quell any of the questions. i don't know if we need a select committee but if it's true john boehner is deeply ninth the matter, republicans control the house and they can continue investigating. >> bret: when the president says there is nothing there, i asked dan last night that she

challenging reporters to say, there is no there? >> there are three theres and they are extremely important issues. president hasn't answered and it's the same thing we have always had. why was the request for security denied including the ambassador that was ultimately killed? how could america at least made an attempt of rescue? the response by democrats, well, it wouldn't have arrived in time. how in the hell do you know? it could be 7 and a half hours or 17 hours. that is is not a response. and where was the president that night? we've seen the videos and pictures in the situation room of obama on the night of the osama raid. show me a picture of where he was on the night of the attack in libya. give me a time line. who did he talk to and what did

he do? lastly the talking points and compounded by the fact that the president now said, i said it was a terror attack on the day after. that is not true. even the "washington post" has said today, it was absolutely a falsehood. it's a falsehood on top of falsehood. the one vision i give to republicans stop calling it a huge scandal. stop saying its water gated. stop saying it's iran contra, let the facts speak for themselves. have a special committee. the facts will speak for themselves. pile them on but don't exaggerate and don't run ads about hillary and narrative for the other side because it's a political event. just be quiet and present the facts. >> bret: that is it for the panel. stay tuned for an unexpected guest at the white house. . [ musick ] i knew there were a lot of tech jobs

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>> bret: finally tonight, president obama, of course, held that joint press conference with british prime minister david cammeron yesterday. one show he apparently had a different camera angle to be able to get who showed up when he was asked about the benghazi investigation. >> we got time for a couple questions. we're going to start with julie paste. >> i wanted to ask about benghazi. do you stand by your administration's assertions that the talking points were not purposely changed to down play the prospects of terrorism? [grinding noise]

[lawn mower] [ laughter ] >> thanks for inviting us into your home tonight. that is it for "special report." fair balanced and unafraid. >> shepard: this is the fox report. tonight, criminal investigation. the attorney general launched it today and the question, did the irs break any laws when it targeted some conservative groups? plus, why? why did the justice department spy on journalists? >> got a notice from the justice department that they had seized the records of 20 of our telephone lines. >> shepard: the white house says it had no idea. >> we have no knowledge of any attempt by the justice department to seek phone records of the associated press. >> i'm confident that the people who are involved in this investigation followed all of the appropriate justice department